INTRODUCTION

This case study focuses on the way in which Jaguar, one of the world’s most prestigious car manufacturers,
has employed lean manufacturing processes. This underpins the success of the new Jaguar S-Type
production line at its Castle Bromwich factory in Birmingham (UK).

Lean manufacturing is the process of eliminating waste in production in order to guarantee quality and
maximise efficiency. Lean production involves the standardisation of work processes to cut out waste. The
standard is the best identified method of operation at a particular moment in time and one that will be
continuously monitored and improved by the individual operator.

The key to lean production is to identify which processes in the organisation of production add value to the
production process. Processes which do not can then be reduced or eliminated so that labour and
machinery can focus on added value activities. This does not mean that production line workers and
machinery have to work harder - rather they need to be able to work ‘smarter’.

The change process

In order to create and implement the change process at Castle Bromwich, Jaguar managers and
supervisors worked with a team of outside consultants, RWD Technology UK Ltd to create an ongoing
climate of change. Jaguar already had an established culture of quality around which the international
reputation of the company was built. However, it was necessary to develop new ways of working and
perceptions about continuous quality improvement.

Firstly, it was necessary to transform patterns of working relationships. Previously the factory had been
organised using a hierarchical approach with one supervisor and one group leader taking responsibility for
up to 30 production line workers. In the new structure a team leader works with a small group of seven
team members.

The old approach was characterised by a ‘tell and do’ approach with instructions being fed downwards in
order to exercise control from above. Today this pattern of decision making has been inverted. Group
members are expected to take responsibility for their own work and to use team leaders for support - i.e.
in a helping role. Jaguar workers have enthusiastically adopted the new approach as it allows for greater
involvement and responsibility for improving their work patterns. Increased productivity and quality is
clearly visible as a consequence.

The first step in implementing change was to ask workers to operate in small teams with a group leader –
an approach known as cellular working. The teams (cells) were introduced to a series of new approaches
(tools) designed to enable them to work more effectively. Teams were trained in their work areas rather
than classrooms so they could see how to apply the new tools in a work based context, and feel
comfortable and involved.

Matching supply to demand – Just in time

One of the most significant changes has been creating continuous flow system of production based on a
‘just-in-time’ approach. Previously, groups of employees had focused on set processes in the production of
Jaguar cars using batches of components. The work area for a particular process would be cluttered with
batches of components which resulted in a cramped working environment and less floor space.

The new approach is to cut down stocks of components in the workspace to the numbers required to keep
production flowing smoothly. Teams press a signal button to call for fresh stocks when they are required. A
quick response from a central store enables new parts to arrive at work stations ‘just-in-time’ for them to
be used. This cuts out waste in a number of ways, for example:

 less floor space is required

 cells are able to work in an uncluttered work area
 walking (physically moving about between operations) is minimised
 fewer components are damaged from standing around in batches on the workspace floor.

One of the greatest measures of improved working systems at Jaguar has been to match the supply of new
cars coming off the line at Castle Bromwich to the demand from Jaguar customers. Given the demand for
Jaguar cars, production managers are able to calculate the volume of cars that need to come off the
production line in any one week. Produce too few and you will not be able to meet demand; produce too
many and you have the waste of rising inventory. The solution is to run the production line at the speed
necessary to match demand patterns while retaining quality.

Visible management/visual factory

A system of ‘visible management’ has been introduced at Castle Bromwich to enable everyone involved in
the process to understand how individual parts of the plant are performing so they can contribute to
meeting performance requirements. An important part of this initiative is the use of Control Boards (i.e.
visual screen) which everyone involved in the production process can read at a glance and check on the
production performance of their production line. The Control Board reveals the daily production target for
each production line and the performance of the line against this target.

At any one time anyone on the production line can see where they are in relation to target or where
bottlenecks are occurring so that more help can be put into problem areas. Jaguar has adopted a Japanese
word ‘gemba’ — which means to go see - to develop a new approach to production management and
supervision. Managers are encouraged to gemba, i.e. to ‘go see’ - to understand, grasp, and solve problems
when they occur rather than sit in remote offices.

The Control Board is a quick and visual tool for monitoring where problems occur on the production line.
On the Jaguar production line, cars flow along a line with teams processing the work on the car in an
ordered sequence. It is essential that each line worker completes their specialist tasks to the highest
quality before the car moves to the next position on the line. If a worker is having a problem they pull a
cord which alerts their team leader who will provide assistance. If the team leader, who is more
knowledgeable and multi-skilled than other production line workers, is able to quickly solve the problem
he pulls the cord a second time and the line continues to flow forward.

However, if the problem cannot be immediately solved the whole line will halt and then wait while the
problem is solved. It is estimated that typically there will be 130 - 150 pulls of the cord per shift. The
running total is recorded on Control boards indicating the performance of each line. This makes it possible
for production managers and supervisors to identify problems more easily.

Another aspect of visual management is the use of open Information Centres in the work areas of the
factory. These Information Centres are based on a ‘three minute management approach’. Information
from the Centre can quickly aid employees - within three minutes - to understand work related visions and
goals, issues and problems affecting particular sections of the work area.

The Information Centre is about communicating in a simple and direct way - using clear and graphic charts
to highlight issues, events and progress. The charts and work plans which are pinned up in the Information
Centre are signed by all of the managers, supervisors and team leaders involved in drawing them up to
show a shared sense of responsibility and of understanding of work related issues.
Ownership of work
Under the new working arrangements at Jaguar, work teams have been encouraged to take responsibility
for their own work. Work must be standardised so that everyone knows what they are accountable for and
they can ensure quality standards. However, within each cell, team members will be responsible for writing
their own work element sheets. In this way the team takes ownership for the processes and the amount of
time involved in carrying out work.

Borrowing another idea from Japan - the ‘Yamazumi Board’ - the responsibility of each worker is outlined
in a series of work elements. These work elements are shown in a vertical column on a Yamazumi board
which is a flat white screen. The value added activities of each employee are shown in green and non-value
added activities in red. The height of each vertical element represents the amount of time needed to carry
out the element e.g. nine seconds. By examining the Yamazumi board it is possible to reallocate some work
elements from some production workers to others in order to create greater fairness of work distribution.

Conclusion
Lean production is all about reducing waste. This involves working more effectively with TAKT time (the
time available to produce each car). The teamwork approach is a recognition that the best way to achieve
this is for all members of the workforce to be involved to achieve a quick response.

Lean production has enabled Jaguar to cut out waste in the production of the Jaguar S-type at Castle
Bromwich. Ford is now seeking to spread the message about lean production by incorporating a total of
400 of its Halewood employees into working at Castle Bromwich. The successful implementation of lean
production at Jaguar will form the benchmark for the systems introduction at Halewood.

Key questions:

1. How do you satisfy customers and gain profits at the same time?
2. What is the problem (or problems) in the operation?
3. How do you achieve jidoka (built-in quality) in each process?
4. How do you make just-in-time production and delivery possible?
5. How do you standardize the work?
6. How are you going to stabilize and improve the availability of equipment and machinery?
7. How are you going to develop staff and first-line supervisors?
8. How do you ensure sustainable results and build on them?

The first two questions focus on the purpose of the organization; questions 3 to 6 are about process; and
the last two questions are about people and how to create a sustainable improvement culture.